City of Los Angeles Rent Stabilization Ordinance: Rent Caps and Evictions

The Los Angeles Rent Stabilization Ordinance caps how much your rent can go up each year, limits the reasons your landlord can evict you, and requires relocation payments when a no-fault eviction forces you out. It covers roughly 650,000 apartments inside the City of Los Angeles that were built on or before October 1, 1978. A set of amendments that took effect February 2, 2026 lowered the maximum annual increase and removed several surcharges landlords used to add on top of it.

Does Your Unit Qualify

The ordinance only reaches rental housing inside the City of Los Angeles. Unincorporated parts of Los Angeles County are not covered, and neighboring cities like Santa Monica and West Hollywood run their own separate rent control programs.¹ The building must have received its first certificate of occupancy on or before October 1, 1978. For older buildings that predate the certificate system, residential building permits from before that date can establish coverage.²

Covered housing includes apartments, duplexes, townhomes, mobile homes in mobile home parks, and rooms in hotels, motels, or boarding houses occupied by the same tenant for 30 or more consecutive days.³

Several categories fall outside the ordinance. Single-family homes and condominiums are exempt because the state Costa-Hawkins Rental Housing Act bars cities from capping rent on those property types.⁴ Buildings constructed after October 1, 1978 are not covered. Government-subsidized housing with rents already regulated by a federal or state agency is also exempt.

A rarely used “luxury exemption” also exists. If the rent charged on the unit as of May 31, 1978 exceeded $302 for a studio, $420 for a one-bedroom, $588 for a two-bedroom, $756 for a three-bedroom, or $823 for four or more bedrooms, the landlord can apply to the housing department for a luxury exemption certificate. The exemption does not apply automatically; the landlord has to obtain that certificate.⁵

How Much Can Your Rent Go Up

Rent on a covered unit can go up only once every 12 months. The amount is tied to the Consumer Price Index for the Los Angeles area, but it is not a straight pass-through of inflation. Under the formula the City Council adopted effective February 2, 2026, the annual increase is set at 90% of the average CPI, with a floor of 1% and a ceiling of 4%.⁶ The old formula allowed a range of 3% to 8%, so the new cap is a meaningful reduction.

Through June 30, 2026, the maximum annual increase remains 3%.⁶ The rate for the following year will be announced by the housing department under the new formula.

The old surcharges that stacked on top of the base increase are gone. Before February 2, 2026, a landlord who paid the gas or electricity for a unit could add 1% for each utility, and could add 10% for additional occupants. All of those surcharges were eliminated.⁷

California law requires written notice before any rent increase. For an increase of 10% or less of your current rent, the landlord must give at least 30 days’ notice. If the increase exceeds 10%, the required notice jumps to 90 days.⁸

One important limit on the protection: when a tenant voluntarily moves out or is evicted for cause, the landlord can reset the rent to whatever the market will bear for the next tenant. This is called vacancy decontrol. Once a new tenant moves in, the annual caps resume for that tenancy. The ordinance protects you against sharp increases while you live there; it does not freeze the unit’s rent across tenancies.

Capital Improvement and Seismic Surcharges

Beyond the annual increase, a landlord can apply for a temporary surcharge to recover the cost of major building improvements. These are not automatic. The landlord has to apply to the housing department and get approval before anything is added to your rent.

For capital improvements, the cost is split 50/50 between the landlord and the tenants who benefit. The monthly surcharge is capped at $55 per unit and lasts up to 72 months, or until the approved amount is collected. The work must primarily benefit tenants, last at least five years, and be permanently installed; routine maintenance and repairs do not qualify.⁹

For mandatory seismic retrofitting, the cost is also split 50/50, but the monthly cap is $38 per unit and the surcharge can run for up to 120 months, extended if needed to collect the full approved amount.¹⁰

A small registration-related surcharge is also allowed. The landlord can pass through $1.61 per month for the annual rent stabilization registration fee, and up to about $2.83 per month as half of the Systematic Code Enforcement Program fee, the latter only after 30 days’ written notice.¹¹¹²

When a Landlord Can Evict You

A landlord cannot simply decide not to renew your lease or tell you to leave. Evictions are limited to specific grounds listed in the municipal code, split into at-fault and no-fault categories.¹³

At-Fault Grounds

At-fault grounds involve tenant conduct that breaches the lease or the law:

Nonpayment of rent the landlord is legally entitled to collect.
A lease violation the tenant has not corrected after written notice.
Causing a nuisance or damaging the unit, common areas, or building.
Using the unit for illegal purposes.
Refusing to sign a new lease on substantially similar terms when the current one expires.
Refusing reasonable access for repairs, inspections, or showings allowed by law.
Occupancy at the end of a lease term by a subtenant the landlord never approved.

No relocation assistance is owed when the eviction is at fault.¹³

No-Fault Grounds

No-fault evictions happen when you have done nothing wrong but the landlord has a legally recognized reason to take back the unit:

Owner or close family move-in, where the landlord is a natural person and the unit will be the primary residence of the owner, spouse, child, grandchild, parent, or grandparent.
Demolition or permanent removal of the unit from the rental market under the Ellis Act.¹⁴
A government order to vacate the building.
Major renovation work under an approved Tenant Habitability Plan.
Conversion of the property to affordable housing.

Every no-fault eviction triggers a relocation payment and strict filing procedures with the housing department.

Owner move-in gets the most scrutiny because it is the most frequently abused. The owner or qualifying family member has to actually move in within three months and intend to stay for at least two years. If the owner re-rents within two years, the displaced tenant has a right of first refusal, provided the tenant gave the landlord written notice of interest within 30 days of being displaced. Failing to move in on time, or failing to stay the full two years, can be treated as evidence of a bad-faith eviction.¹⁵

Relocation Pay for a No-Fault Eviction

If your landlord initiates a no-fault eviction, you are entitled to a relocation payment. The amount depends on whether you are classified as “eligible” or “qualified.” A qualified tenant is anyone who, on the date the eviction notice is served, is 62 or older, disabled, or has one or more minor dependent children.¹⁶ Qualified tenants get the higher payment; all other adult tenants are “eligible.”

Dollar amounts are adjusted annually based on the CPI, and the housing department publishes updated figures every July. The landlord must provide the funds within 15 days of serving the written notice to terminate, or deposit the money into an escrow account instead.¹⁷¹⁶ Missing the 15-day deadline or paying the wrong amount can void the eviction notice entirely, and an incomplete or late payment is a defense you can raise if the case ends up in court.

Buyout Offers: Cash for Keys

A landlord may offer to pay you to leave voluntarily rather than go through a formal eviction. These arrangements are legal, but the ordinance adds significant protections so tenants are not pressured into a bad deal.

Before any buyout offer, the landlord must serve you with an RSO Disclosure Notice explaining your rights, which both parties must sign and date. The buyout agreement itself must be written in your primary language and include a bold statement above the signature line telling you about your right to cancel.¹⁸

After signing, you have 30 days to cancel for any reason without penalty. If the landlord skipped any required step, used the wrong language, or left out the cancellation statement, you can cancel at any time, even after the 30-day window closes.¹⁹ The landlord must file copies of the disclosure notice and the signed agreement with the housing department within 60 days. A landlord who violates any of these rules can owe damages plus a $500 penalty per violation.¹⁸

You are never required to accept a buyout. You can refuse it, negotiate for more, or talk to a lawyer first. The landlord cannot retaliate against you for saying no.

Major Renovations and Habitability

When a landlord plans major renovation work such as re-piping, seismic retrofitting, rewiring, hazardous material removal, or structural work that exposes the building frame, the housing department requires a Tenant Habitability Plan before work can start. The plan has to describe the scope of work and the specific steps that will be taken to protect you during construction.²⁰

The plan must address noise, utility shutoffs, exposure to hazardous materials, disruption of fire safety systems, and loss of access to parts of your unit. You cannot be forced to occupy a unit that is uninhabitable outside the hours of 8:00 a.m. to 5:00 p.m., Monday through Friday, or be exposed to toxic materials at any time. If temporary relocation is necessary, the landlord pays for it.²⁰ Ask to see the accepted plan before any work begins.

Interest on Your Security Deposit

A landlord who has held your security deposit for at least one year must pay you interest on it. For 2026, the rate set by the Rent Adjustment Commission is 3.03%.²¹

The landlord can use either the commission’s published rate or the actual interest earned on the deposit if it is held in an interest-bearing account. If the landlord claims to use the actual-earnings method, you are entitled to a bank statement showing what the deposit earned; if none is provided, the commission’s rate applies by default.²²

Interest has to be paid as either a direct payment or a rent credit, monthly or yearly. The landlord picks the method and has to notify you in writing of the choice. Waiting until the tenancy ends to pay accumulated interest is not allowed; at move-out, any unpaid interest is returned with the deposit itself on the timeline California law sets for returning deposits.²²

If Services Are Cut

A landlord who reduces housing services without lowering the rent has effectively raised it. If your building loses amenities you have been paying for, such as laundry room access, parking, a working elevator, or reliable hot water, you can file a complaint with the housing department asking for a corresponding rent reduction.²³

Two steps are required: a written complaint to the housing department and written notice to the landlord identifying the lost service. The department will investigate and can order a reduction retroactive up to three years from the date you filed. If the landlord restores the service within a reasonable time after being notified, the department may decline to order a reduction, so filing quickly matters.²³

Check That Your Landlord Is Registered

Every covered unit must be registered with the Los Angeles Housing Department every year. A landlord who has not paid the registration fee and filed the required paperwork cannot legally demand or accept rent and cannot serve a valid eviction notice.¹ Courts routinely dismiss unlawful detainer cases where the landlord is not current. If your landlord tries to raise your rent and you suspect they have not registered, you can check through the housing department’s online database.

What You Can Collect If the Landlord Breaks the Rules

If you are charged rent above the legal maximum, you can sue your landlord and recover three times the excess amount, plus reasonable attorney fees and costs. That treble-damages provision makes violations expensive and gives you real leverage to challenge an illegal rent increase without carrying the full cost of hiring a lawyer. A landlord who violates any provision of the ordinance can also be charged with a misdemeanor punishable by a fine of up to $1,000 or up to six months in jail.

1
Los Angeles Housing Department. Los Angeles Municipal Code Chapter XV – Rent Stabilization Ordinance
2
Los Angeles Housing Department. Rent Stabilization Bulletin – RSO Registration of Rental Property
3
Los Angeles Housing Department. What Is Covered Under the RSO
4
City of Los Angeles. Report of the Chief Legislative Analyst – Resolution to Support AB 1791
5
Los Angeles Housing Department. Luxury Exemption Certificate
6
Los Angeles Housing Department. Renter Protections
7
Los Angeles Housing Department. RSO Rent Increase Calculator
8
California Legislative Information. California Code CIV 827
9
Los Angeles Housing Department. Capital Improvement Program
10
Los Angeles Housing Department. The Seismic Retrofit Work Program
11
Los Angeles Housing Department. RSO Overview
12
Los Angeles Housing Department. Annual RSO/JCO/SCEP Bill
13
American Legal Publishing. Los Angeles Municipal Code 151.09 – Evictions
14
Los Angeles Housing Department. Ellis Act Information
15
Los Angeles Housing Department. Evictions for Occupancy by Landlord, Landlord’s Immediate Family or a Resident Manager
16
Los Angeles Housing Department. Relocation Assistance Information
17
Los Angeles Housing Department. Relocation Assistance
18
American Legal Publishing. Los Angeles Municipal Code 151.31 – Tenant Buyout Notification Program
19
Los Angeles Housing Department. Tenant Buyout Notification Program
20
Los Angeles Housing Department. Tenant Habitability Program
21
Los Angeles Housing Department. Interest Payment on Security Deposit Bulletin
22
American Legal Publishing. Los Angeles Municipal Code 151.06.02 – Payment of Interest on Security Deposits
23
Los Angeles Housing Department. Reduction in Housing Services